IDEAS home Printed from https://ideas.repec.org/a/vrs/aicuec/v64y2017i3p289-306n2.html
   My bibliography  Save this article

An Analysis Regarding Cash Holdings. Empirical Study on the Bucharest Stock Exchange Listed Firms

Author

Listed:
  • Nenu Elena Alexandra

    (The Bucharest University of Economic Studies, Romania)

  • Vintilă Georgeta

    (The Bucharest University of Economic Studies, Romania)

Abstract

Worldwide corporate cash holdings have significantly increased and have become an important tool for managers. This study explores the factors that influence firms’ behavior regarding cash holdings and the signal that financial conservatism is sending to potential investors. Our data consists in annual observations collected through the Reuters Eikon platform. It includes companies listed on the Bucharest Stock Exchange, the investigated period being 2005-2014. The econometric analysis employs multivariate regression for an unbalanced panel data, using the OLS technique. The results show a positive correlation of cash holdings with the value registered by this indicator in the previous period, fact that might be interpreted as an attempting of the companies to maintain a target level of cash. Also, the results showed a non-linear relationship between leverage and cash holdings, while the tangible assets determine a negative correlation. As regards firm size and ownership concentration, the correlations were not statistically validated.

Suggested Citation

  • Nenu Elena Alexandra & Vintilă Georgeta, 2017. "An Analysis Regarding Cash Holdings. Empirical Study on the Bucharest Stock Exchange Listed Firms," Scientific Annals of Economics and Business, Sciendo, vol. 64(3), pages 289-306, October.
    • Handle: RePEc:vrs:aicuec:v:64:y:2017:i:3:p:289-306:n:2
    DOI: 10.1515/saeb-2017-0019
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/saeb-2017-0019
    Download Restriction: no
    File URL: https://libkey.io/10.1515/saeb-2017-0019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    cash holdings; liquidity; leverage; cash flow;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:aicuec:v:64:y:2017:i:3:p:289-306:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.